Botswana Stock Exchange Limited (BSEL) has published proposals for the relaxation of listing rules for its Tshipidi SME board.
Since the introduction of the Tshipidi board earlier this year, the national bourse has been debating how the targeted companies can overcome the challenges associated with listing.
While the stock exchange is seen as an ideal vehicle for mobilising capital, many potential ‘listees’ face issues around the thresholds required, costs of advisory services and the burden of remaining listed.
This week, the BSEL opened its proposals to public comment, indicating that access to Tshipidi would be lowered to enable Small Medium Enterprises (SME) to join in.
“SMEs and other potential listing applicants have expressed that one of the major barriers to listing are the costs,” the BSEL said.
One of the proposals includes reducing listing fees for Tshipidi as well as the annual sustaining and review fees.
While on the main equity board listed companies pay an annual fee of 0.025% of the market value subject to a minimum of P50,000 and a maximum of P150,000, Tshipidi counters will pay 0.025% subject to
The BSEL is also relaxing the requirement that listed companies must publish their financials in a national newspaper. Tshipidi counters will not be required to do so.
“The rationale is that at a minimum shareholding of five shareholders, companies listed on Tshipidi will not have such a wide shareholding to the extent that there would be a need to widely distribute their financial information in the national media,” the BSEL said.
“Furthermore, the expectation is that largely only sophisticated institutional investors shall have an interest in investing in these companies and therefore they will have access to the BSEL’s X-News online channels to see the financial releases.”
The Exchange said it had also set up registered advisers who are on a list of professional service providers in order to give potential listees a wide selection of BSEL-approved service providers. This, in turn improves listees’ ability to negotiate lower professional fees.